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Is equity release right for you?

The advantages of choosing equity release include:

  • You can get a lump sum, a regular income, or both, and you don’t have to move house.
  • A reputable plan will guarantee that you’ll be able to continue living in your home until you die or go into long-term care.

Disadvantages can include:

  • With a lifetime mortgage, the interest is added to the amount you owe. As you are paying interest on the interest, the amount you owe can grow quickly.
  • If you decide to repay a lifetime mortgage plan early, there could be a substantial early repayment charge.
  • If you die soon after taking out a reversion scheme, you could have sold off your home (or part of it) cheaply - although some schemes give families a rebate if you die within the first few years of signing up.
  • You will get far less than full market value if you sell some or all of your property through a home reversion scheme.
  • Getting a lump sum or regular income may mean you stop being eligible for means-tested benefits, now or in the future.
  • If you want someone such as a relative, carer or new partner to move in, contact your provider. They may not have the right to stay living there after you die or move into long-term care.

Impact of equity release on benefits

You need to consider the impact of any benefits that you receive when you enter a scheme, and be aware of the possible impact on any benefits that you may become entitled to in the future.

If you receive any means-tested benefits, they may be reduced or lost entirely. This will depend on your circumstances and the type of equity release scheme that you choose.

A specialist equity release adviser will be able to advise on what will happen to your benefits if you take out an equity release plan.

Further information


Our Information guides are short and easy to digest, giving a comprehensive overview of the relevant topic. Factsheets are longer with more detail, and are aimed at professionals.

You can download other guides in our series from publications

For more information: Call Age UK Advice: 0800 678 1174

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